U.  * 


r 


STATEMENT 


OF  THE  AFFAIRS  OF  THE 


jfa  ^i[nssJ  and  Jttiluiaaki 


RAILROAD  COMPANY, 


SHOWING  THE 


COST  OF  THE  ROAD  UP  TO  JULY  1,  1857, 


WITH  A 


REPORT  OF  THE  CHIEF  ENGINEER, 

SHOWING  THE  PROGRESS  OF  THE  WORK,  ETC., 


JULY  2 3,  1 8 5 7. 


NEW  YORK: 

BAKER  & GODWIN,  BOOK  AND  JOB  PRINTERS, 

CORNER  NASSAU  AND  SPRUCE  STREETS. 

1857. 


Digitized  by  the  Internet  Archive 
in  2017  with  funding  from 

University  of  Illinois  Urbana-Champaign  Alternates 


https://archive.org/details/statementofaffaiOOIacr 


STATEMENT  OF  THE  COST 


OF  THE 

SEVERAL  DIVISIONS 

OF  THE 

ffa  (fosse  aitir  |$lrltoiutta  gMroalr, 

UP  TO  JULY  1st,  1857. 


EASTEKN  DIVISION. 


CAPITAL  STOCK. 

Full  paid  Stock,  . . $2,281,300  00 

Partially  paid  Stock,  . 64,671  74 


Total  Capital  Stock,  $2,345,974  74 


First  Mortgage  Bonds, 
Less  amount  purchased 
for  Sinking  Fund, 
Less  amount  converted 
into  Stock, 

Less  amount  on  hand, 


BONDED  DEBT. 

$950,000 

14,000 

6,500 

1,000 


21,500 


Total  1st  Mortgage  Bonds  outstanding, 


$928,500  00 


4 


314,000  00 


Milwaukee  City  Bonds, 
Convertible  five-year  Bonds 


7 per  cent., 

Less  amount  converted, 


$300,000 

193,000 


Total  convertible  Bonds  out- 


standing 

Farm  Mortgage  Bonds,  . 1,073,800 

Less  amounts  in  hands  of 


107,000  00 


agents  and  unexpended,  142,700 


931,100  00 


Total  Bonded  Debt. 


$2,280,600  00 


These  farm  mortgages  were  given 
in  payment  of  stock,  and  though 
nominally  a debt  of  the  com- 
pany are  really  payable  b}^  the 
individual  mortgagors,  who  are 
stockholders  to  the  same  amount; 
and  this  item  would  be  more 
properly  included  as  stock  not 
transferable,  than  as  indebted- 
ness. This  amount  deducted 
from  the  above,  would  leave  the 
bonded  debt  of  the  Eastern 
Division,  $1,206,800  instead  of 
as  above. 

Incumbrances  assumed  on 
Beal  Estate,  purchased  for 

Depot  grounds  in  Milwaukee,  14,108  33 

Bonds  and  Mortgages  given 
for  Beal  Estate,  purchased 
for  Depot  Grounds  in 

Milwaukee,  . . . 6,000  00 


FLOATING  DEBT. 


Bills  payable 
Sundry  Accounts, 


$120,439  65 
104,560  39 


$225,000  04 


5 


Deduct  Bills  BecVble,  $8,563  25 

<£  Sundry  Accts.,  34,714  06 

“ Cash  in  hand  of 

Treas.,  38,499  83 

“ Milwaukee  and 

Superior  B. 

B.  Stock,  20,000  00 


$101,777  14 


Balance  of  Floating  Debt,  . . . $123,222  90 

Income  prior  to  July  1st,  1856,  . . 212,713  50 

General  Account  charged  to  Eastern  Division,  4,982,619  47 

From  which  deduct  credits  as  follows : 

Balance  due  from  Watertown 
Division,  . . $416,844  21 

Balance  due  from  Portage  Di- 
vision, . . 51,900  95 

Balance  due  from  Western  Di- 
vision, . . . 38,149  35 

Balance  due  from  Northwestern 
Division,  . . 279,268  77 

And  the  following  sums,  being 
payments  made  on  general  ac- 
count and  charged  to  the  Eas- 
tern Division,  for  Engineering, 

Bight  of  Way,  Interest,  Agen- 
cies, Incidental  Expenses,  and 
construction,  which  are  charge- 
able to  the  other  Divisions,  viz. : 

To  the  Western  Division,  218,873  72 

“ Northwestern  Division,  512,890  16 

“ Watertown  “ 537,688  12 

“ Portage  “ 96,329  58 


Total  charged  to  other  Divisions,  $2,151,944  86 

Which  sums  deducted  from  the  foregoing  general 


6 


account  of  the  Eastern  Division,  will  reduce  the  true 
cost  of  the  Eastern  Division,  including  its  proper  pro- 
portion of  Interest,  Discount,  Commissions  and  Finan- 
cial Agencies,  to  the  sum  of  2,880,674  61 

Length  of  main  line  in  operation,  95  miles. 

“ side  track  “ 7f  “ 

Total  102f  “ 

WESTERN  AND  NORTHWESTERN  DIVISIONS. 

CAPITAL  STOCK. 

Full  paid  Stock  in  Western  Division,  $2,200  00 

“ “ N.  Western  “ 9,900  00 

Privilege  “ 77,310  00 

Total  Capital  Stock,  $89,410,00 

BONDED  DEBT. 

First  Mortgage  Land  Grant  Bonds,  total  issue,  $2,500,000  00 
Less  Amt.  on  hand  Mil’kee  Office,  102,000  00 
“ “ “ New  York,  “ 576,000  00 

Total  on  hand,  . . . 678,000  00 

Total  amt.  disposed  of  . . $1,822,000  00 

Construction,  5 years,  7 per  cent. 

Bonds,  whole  issue,  . $1,000,000  00 

Less  amt.  on  hand  and  unex- 
pended, . . . 240,000  00 

Total  amt.  construction  Bonds  expended,  $760,000  00 

Total  Bonded  Debt,  . . $2,582,000  00 

In  addition  to  the  foregoing  bonded  debt,  there 
was  issued  in  settlement  with  the  St.  Croix  and  Lake 
Superior  R.  R.  Co.,  in  pursuance  of  the  requirements 


7 


of  the  act  making  the  grant  of  land  to  this  company, 
one  million  of  dollars  in  its  unsecured  bonds,  payable 
in  ten  (10)  years  from  the  1st  day  of  April,  1857, 
with  7 per  cent,  per  annum  interest ; which,  how- 
ever, is  not  included  in  the  indebtedness  of  the 
company,  for  the  reason  that  the  St.  Croix  and  Lake 
Superior  R.  R.  Company  under  its  new  organiza- 
tion, became  responsible  for  the  same  amount  by  an 
issue  to  this  company  of  its  first  mortgage  bonds,  pay- 
able at  the  same  period  with  interest  at  the  same  rate 
per  centum,  whereby  this  company  is  guaranteed 
against  loss,  and  the  means  provided  for  the  ultimate 
liquidation  of  the  entire  issue. 

FLOATING  DEBT. 

Bills  payable,  . . $33,000  00 

Amts,  due  on  sundry  accts.  . 12,048  00 

Total  Floating  Debt,  . . . $45,048  00 

Amt.  due  Eastern  Division  from 

FT.  Western  Division,  . . $279,268  77 

Western  Division,  . 38,149  35 

And  for  Engineering,  Right  of  Way, 

&c.,  as  stated  above, — 

For  Western  Division,  . . 218,873  72 

N.  Western  do.,  . 512,890  16 


Total  due  Eastern  Division,  . $1,049,182  00 

Total  expended  on  Northwestern  and 
Western  Division,  . . $3,765,640  00 

From  which  deduct  credits  as  follows  : — 

Balance  due  for  Portage  Division,  1,753  05 
“ “ Waterton,  “ 157,140  33 

“ “ St.  Croix  and  Lake 

Sup.  R.  R.  5,160  00 


Due  other  Divisions  $164,053  38 


8 


Cash  on  deposit  with  Wis.  Marine 
and  Fire  Ins.  Co.  . . 27,409  95 

“ u “ Atwood  & Co., 

(N.  W.  Diy.),  29,901  63 
(Westr.)  162,135  90 


Cash  on  hand,  . . 219,447  48 

383,500  86 


Total  net  expenditure  on  Western  and 
Northwestern  Division,  . . $3,382,139  14 

POETAGE  DIVISION. 

Amount  due  Eastern  Division,  . . . $51,900  95 

“ “ “ for  Engineering  Eight  of 

way,  &c.,  . . 96,329  58 

“ “ Western,  “ 1,753  05 

Sundry  Accts.  .....  100  00 

$150,083  58 

WATEETOWN  DIVISION. 

Capital  Stock,  ....  $216,960  04 

BONDED  DEBT. 

First  Mortgage  Bond,  . . 310,000 

Milwaukee  City  Bonds  (secured  by 

2d  Mortgage),  . . . 200,000 

Third  Mortgage  Bonds,  . 150,000 

Less  amt.  reduced  by  sinking 
fund  and  canceled,  . 32,000 

118,000 

Watertown  City  Bonds,  . 80,000 

Less  Ain’t,  retired,  . . 5,100 

74,900 

Consolidation  Bonds  issued  for  stock  of 
Mil.  and  W atert’n  E.  E.  Co.8  retired,  145,100 


Total  Bonded  debt, 


$848,000,00 


La  Crosse  and  Milwaukee  railroad  company. 

Statement  of  the  affairs  of  tip 
La  Crosse  and  Milwaukee  railway  comp- 
any, showing  the  cost  of  the  road  up 
to  July  1,  1857,  with  a report  of  the 
chief  engineer,  showing  the  progress 
of  the  work,  etc.  New  York,  Baker 
& Godwin,  1857. 


9 


There  is  a contingent  liability  of  $31,000  for  town 
bonds,  received  from  Town  of  Columbus  and  other 
towns,  given  to  the  company  in  consideration  of  stock 
issued  to  the  towns  (embraced  in  foregoing  amount 
$216,960  04),  which  bonds  the  towns  are  liable  to 
pay  although  guaranteed  by  the  company. 

FLOATING  DEBT. 

Bills  Payable,  . $73,698  78 
Open  Acc’t.  with  Bishop, 

Stewart  & Co.  (cont.)  31,047  13 
Amt.  due  on  sundry  acc’ts.  8,022  01 

112,767  92 

Less  1st  Mtge.  Bonds  with 
Bishop,  Stewart  & Co.,  58,000  00 
“ Sundry  open  acc’ts.  5,107  30 
“ Cash  in  hands  of 

Treasurer,  . 4,591  65 

“ Atwood  & Co.,  4,180  80 

71,879  75 


Total  Floating  Debt,  . . $40,888  17 

Amount  due  Eastern  Division,  . . 416,814  21 

“ “ “ “ For  right  of  way, 

Engineering,  &c.  537,688  12 
u « Western,  . . . 157,140  33 

Total  expended  on  Watertown  Division,  $2,217,520  87 

J.  HADLEY,  Secretary. 

It  is  to  be  borne  in  mind  that  all  sums  included  in 
this  statement  are  the  actual  amounts  expended  in  the 
securities  of  the  company,  at  their  par  value ; and  that 
to  ascertain  the  actual  cash  cost  of  any  portion  or 
division  of  the  road,  a deduction  of  about  twenty-five 
per  cent,  must  be  made,  for  discounts  in  the  negotiation 
of  those  securities. 


10 


RECAPITULATION. 

EASTERN  DIVISION  AND  OLD  GENERAL  ACCOUNT. 

Capital  stock,  ....  $2,345,974  74 
Mortgage  Stock,  . . . 1,073,800  00 
Other  Bonds,  ....  1,206,800  00 
Due  on  Real  Estate,  . . 20,108  33 

Floating  Debt,  . . . 123,222  90 

Income  prior  to  July  1,  1856,  212,713  50 


$4,982,619  47 

Less  ain’t  transferred  to  other 
divisions,  ....  2,151,944  86 


Cost  of  Eastern  Division,  . . $2,830,674  61 


NORTHWESTERN  AND  WESTERN  DIVISION. 


Capital  stock,  .... 
Bonded  debt  for  road,  . 

Do.  on  account  of  land  grant,  . 
Floating  debt, 

Due  Eastern  Division  and  Gene- 
ral Account, 


$89,410  00 
1,822,000  00 
760,000  00 
. 45,048  00 

1,049,182  00 


$3,765,640  00 

Less  am’t  due  from 

other  divisions,  $164,153  38 
Less  cash  on  hand,  219,500  86 

383,500  86 


Total  expended  on  N.  W.  and  W.  Div.,  3,382,139  14 


PORTAGE  DIVISION. 

Due  other  divisions,  . . $149,983  58 

Floating  debt,  ....  100  00 


Total  expended  on  Portage  Division,  . 


150,083  58 


11 


WATERTOWN  DIVISION. 

Capital  stock,  ....  $216,960  04 

Bonded  debt,  ....  848,000  00 
Floating  debt,  ....  40,888  17 

Due  other  divisions,  . . 1,111,672  66 


Total  expended  on  Watertown  Division,  2,217,520  87 


Total  on  all  divisions,  . . $8,580,418  20 

Cash  on  hand,  ....  224,607  48 


$8,805,025  68 

SECOND  RECAPITULATION. 

General  stock,  . . . $2,345,974  74 

Division  stock,  . . . 306,370  04 

$2,652,344  78 


BONDED  DEBT. 

Eastern  Division,  . . . $2,280,600  00 

N.  W.  and  W.  Division,  . 1,822,000  00 

Do.  on  account  of  land  grant,  . 7 60,000  00 

Watertown  Division,  . . 848,000  00 

$5,710,600  00 


FLOATING  DEBT. 

Eastern  Division,  . . . $123,222  90 

N.  W.  and  W.  Division,  . . 45,048  00 

Portage  Division,  . . . 100  00 

Watertown  Division,  . . . 40,888  17 

$209,259  07 
20,108  33 
212,713  50 


Due  on  real  estate, 

Income  prior  to  July  1,  1856, 


$8,805,025  68 


12 


OPERATIONS  OF  THE  ROAD. 


Month,  1857. 

Receipts  from 
Passengers. 

Receipts  from 
Freight. 

Receipts  from  all 
other  sources. 

Total  Receipts. 

January,  . . 

February,  . . 

March,  . . . 

April,  . . . 

May,  . . . 
June, .... 

$8,214  69 
9,098  42 
14,922  61 
18,188  36 
18,895  09 
21,480  73 

$12,662  54 
19,011  99 
32,609  46 
26,366  27 
43,763  57 
37,250  40 

$280  39 
951  07 
301  25 
479  77 
563  11 
1,801  00 

$21,157  62 
29,061  48 
47,833  32 
45,029  40 
63,221  77 
60,532  13 

Total,  . . 

$90,794  90 

$171,664  23 

$4,376  59 

$266,835  72 

CHIEF  ENGINEER’S  REPORT. 

Engineer’s  Office,  La  Crosse  and  Milwaukee  Railroad. 

Milwaukee,  July  18th,  1857. 

Hon.  Byron  Kilbourn, 

Prest.  La  C.  and  M.  R.  R.  Co. 

Sir, — The  following  statement  in  relation  to  the  condition 
and  progress  of  the  construction  of  your  road,  is  respectfully 
submitted : — 

Extent  of  main  line  in  operation  on  the  Eastern  Division 
ninety-five  (95)  miles.  The  amount  of  side  track  now  com- 
plete on  the  Eastern  Division,  is  seven  and  three  fourths  (7f) 
miles. 

Extent  of  main  line  completed  on  the  Northwestern 
Division  five  (5)  miles.  The  work  now  done  in  grading, 
bridging,  &c.  on  the  Northwestern  Division  between 
Portage  City  and  the  point  of  junction  with  the  Western 
Division,  a distance  of  sixty-one  (61)  miles,  amounts  to 
$522,000.  Estimated  cost  of  completing  the  grading,  masonry, 
and  bridging,  and  laying  tracks  on  the  sixty-one  miles  of 
the  Northwestern  Division,  is  $225,000. 

The  work  now  done  on  the  Western  Division  amounts  to 
$12,000.  Estimated  cost  of  completing  the  grading,  masonry, 
bridging,  and  laying  track  on  same,  is  $610,000. 

Amount  of  work  done  on  the  Portage  Division  $25,000. 
The  track  is  being  laid  westward  from  Portage  City  as  rapidly 
as  possible ; and  no  doubt  need  be  entertained,  but  that  sixty- 


13 


one  miles  of  the  Northwestern  Division  or  land-grant  road 
can  be  completed  and  placed  in  operation  by  the  beginning 
of  winter.  This  will  leave  a distance  of  one  hundred  and 
fifty-six  miles  between  the  termination  of  the  track  and  the 
city  of  St.  Paul,  by  way  of  the  traveled  road,  and  will  open 
up  by  far  the  most  favorable  and  expeditious  route  for  travel 
between  that  city  and  the  East  that  can  be  had  during  the 
coming  winter. 

Early  this  spring  several  parties  of  engineers  wTere  placed 
in  the  field  for  the  purpose  of  making  the  necessary  surveys 
and  examinations  preparatory  to  the  final  location  of  the 
westerly  part  of  the  Northwestern  Division.  These  sur- 
veys will  shortly  be  completed.  The  fact  has  already  been 
developed  that  a very  direct  and  favorable  line  can  be  had 
with  easy  grades,  and  of  cheap  construction. 

The  lands  along  the  vicinity  of  the  line,  are  for  the  greater 
part  of  the  distance  of  a superior  quality.  On  either  side  of 
Black  River,  for  some  ten  or  twelve  miles  from  the  stream, 
the  soil  is  sandy ; and  the  value  of  the  land  is  principally 
owing  to  the  pine  timber,  which  exists  in  such  quantities  as 
to  render  its  value  equal  to  that  of  any  portion  of  the  State. 
West  of  the  prairie  and  Black  River,  and  from  thence  to 
Chippewa  River,  the  lines  pass  over  a series  of  prairies  and 
oak  openings,  the  fertility  of  which  is  clearly  shown  by  the 
exceeding  productiveness  of  the  few  farms  opened  up  and 
improved,  in  this  as  yet  very  thinly  settled  region  of  the 
State.  West  of  the  Chippewa  River,  and  thence  to  the  St. 
Croix,  the  soil  is  excellent  without  exception.  For  a distance 
of  thirty  miles  nearest  the  Chippewa,  it  is  clothed  with  a 
very  heavy  growth  of  hard  wood  interspersed  with  pine  of 
a superior  quality.  The  remaining  distance  to  St.  Croix 
Lake  is  through  prairies  and  openings.  Timber  sufficient  for 
farming  purposes  is  met  with  throughout  the  entire  line ; and 
nothing  is  required  but  railroad  facilities,  and  the  settlement 
and  improvement  which  will  certainly  follow  such  facilities, 
to  render  the  country  traversed  by  the  line  the  most  flourish- 
ing portion  of  the  Northwest. 

Very  respectfully  yours, 

E.  W.  WOODWARD, 

Chief  Engineer . 


14 


CONCLUSIONS. 

From  the  foregoing  statement  of  the  Secretary,  and 
report  of  the  Chief  Engineer,  the  following  conclusions 
are  arrived  at : — 

There  has  been  expended  on  the  Northwestern  and 
Western  divisions,  the  sum  of  $3,382,139  14,  which 
includes  the  cost  of  the  iron  rails  for  that  part  of  the 
northwestern  division,  or  land-grant  road,  between 
Portage  City  and  the  divergence  of  those  lines,  a dis- 
tance of  sixty-one  miles  ; and  for  the  western  division 
from  that  point  to  La  Crosse,  a distance  of  forty-five 
miles  ; so  that  the  iron  is  on  hand  sufficient  to  complete 
the  road  to  the  Mississippi.  It  also  includes  $760,000 
of  bonds  issued,  and  all  expenses  incident  to  procuring 
the  land-grant ; also  the  work  done  on  the  line  in 
grading,  bridging,  &c.,  which  it  appears  is  over  two- 
thirds  done  between  Portage  City  and  said  point  of 
divergence,  requiring  only  $225,000  for  its  completion 
to  that  point ; which  being  completed,  will  put  in 
operation  sixty-one  miles  of  the  land-grant  road,  and 
secure  to  the  company  the  title  to  three  hundred  and 
seven  thousand  two  hundred  acres  of  land,  which,  at 
the  price  heretofore  estimated  as  the  value  of  said  land 
(about  $14  per  acre),  gives  $4,300,800,  as  the  value  of 
the  lands  to  be  received  by  a further  outlay  of  only 
two  hundred  and  twenty-five  thousand  dollars.  It  also 
includes  the  work  done  in  grading,  bridging,  &c.,  on 
the  western  division  from  the  point  of  divergence  to 
La  Crosse,  which  requires  $610,000  for  its  completion. 
The  whole  amount,  therefore,  required  to  complete  the 
road  from  Portage  City  to  La  Crosse,  is  $835,000, 
which,  being  done,  gives  the  company  a productive 
through  line  to  the  Mississippi,  of  which  sixty-one  miles 
will  be  on  the  line  of  the  land-grant  road  ; which  will 


15 


secure  to  the  company  an  amount  of  land  which,  at 
the  lowest  valuation,  will  be  worth  over  four  millions 
of  dollars,  and  which,  at  the  prices  that  will  in  fact  be 
obtained  on  the  sale  of  said  land  after  the  completion 
of  the  road,  give  an  aggregate  of  over  five  millions  of 
dollars.  From  a more  perfect  knowledge  of  the  coun- 
try by  surveys  and  exploration,  we  are  fully  confirmed 
in  the  opinions  heretofore  formed  as  to  the  value  of  the 
lands,  and  believe  our  former  estimates  to  be  not  only 
safe,  but  much  below  what  will  be  the  actual  result. 
Thus,  by  an  expenditure  of  a little  over  eight  hundred 
thousand  dollars  in  addition  to  the  sum  already  ex- 
pended, the  company  will  accomplish  two  most  import- 
ant results : 1st.  A through  line  that  will  render 
productive  the  expenditures  already  made  ; and,  2d. 
Secure  to  the  stockholders  a large  tract  of  land,  the 
value  of  which  will  be  equal  to  more  than  one-half  the 
entire  cost  of  the  road  from  Milwaukee  to  La  Crosse, 
leaving  the  remainder  of  the  grant  of  near  700,000 
acres  to  complete  the  road  to  the  St.  Croix. 

It  will  be  seen  from  the  foregoing  statement  of  the 
Secretary,  that  there  are  still  on  hand  678  of  the  land- 
grant  bonds.  Some  of  these  will  be  paid  for  by  sub- 
scribers, and  the  remainder,  with  the  other  resources 
of  the  company,  will  furnish  us  with  a fund  which  will 
be  amply  sufficient  to  raise  the  amount  we  now  need. 
It  being  necessary  to  call  upon  stockholders  for  their 
aid,  a plan  is  being  matured  which  we  think  will  be 
satisfactory  to  them,  and  at  the  same  time  subserve 
the  interests  of  the  company,  which  will  be  submitted 
for  their  consideration  without  delay.  Any  modifica- 
tion of  the  plan  proposed  may  at  any  time  be  made  at 
the  suggestion  of  stockholders. 

All  expenses  incurred  in  procuring  the  land-grant, 
it  should  be  borne  in  mind,  is  not  properly  a charge 


16 


against  the  road,  although  necessarily  included  in  the 
accounts  ; but  is  to  be  considered  an  expenditure  pecu- 
liarly for  the  land  itself,  as  an  extra  item,  foreign  to  the 
regular  expenditure  incident  to  the  construction  of  the 
road.  It  would,  therefore,  be  improper  to  include  it 
in  a statement  of  the  cost  of  the  road  itself. 

It  is  reported  that  statements  have  been  made  to 
the  effect  “ that  the  land  grant  is  dependent  on  the 
entire  completion  of  the  various  roads  named  in  the 
act  of  the  legislature.”  So  far  from  this  being  the 
case,  the  act  expressly  provides  that  the  company 
shall  receive  the  title  to  240  sections,  or  153,600  acres 
upon  the  completion  of  the  first  twenty  miles ; and 
that  thereafter  it  shall  receive  the  title  to  120  sections 
or  76,800  acres,  in  advance  of  the  construction  of  each 
subsequent  twenty  miles  of  road.  The  section  of  the 
act  on  this  subject  provides  as  follows : “ The  title  to 
said  lands  shall  vest  in  the  said  La  Crosse  and  Mil- 
waukee Railroad  Company  in  the  manner  following, 
that  is  to  say,  whenever  twenty  continuous  miles  of 
said  road  shall  have  been  completed  so  as  to  admit  of 
running  regular  trains  on  the  same,  the  Governor  of 
this  State  shall  certify  to  the  Secretary  of  the  Interior 
the  fact  that  such  twenty  continuous  miles  are  com- 
pleted as  aforesaid,  then  the  title  to  two  hundred  and 
forty  sections  of  said  lands  shall  vest  in  the  La  Crosse 
and  Milwaukee  Railroad  Company ; and  when  a sec- 
ond continuous  twenty  miles  of  said  road  shall  have 
been  completed  so  as  to  admit  of  running  regular 
trains  on  the  same,  the  Governor  shall  certify  as  be- 
fore, and  thereupon  a further  quantity  of  one  hundred 
and  twenty  sections  of  said  land  shall  vest  in  said 
company ; and  so  from  time  to  time,  until  said  roads 
are  completed.” 

A panic  prevailed  in  the  month  of  June  and  early 


IT 


part  of  July,  in  regard  to  all  railroad  securities,  which 
in  extent  and  intensity  has  been  seldom  equaled  ; and 
just  at  the  time  when  the  nerves  of  capitalists  were  at 
their  greatest  tension,  and  the  slightest  report  would 
produce  the  greatest  sensation,  numerous  false  reports 
were  circulated  in  Wall  street  and  elsewhere  in  regard 
to  the  management  and  condition  of  the  affairs  of  this 
company,  which,  so  far  as  they  have  come  to  our  knowl- 
edge, are  sheer  fabrications  or  gross  exaggerations,  as 
ean  be  made  satisfactorily  to  appear  to  all  parties  inter- 
ested who  will  take  the  trouble  to  make  the  inquiry. 
But  to  undertake  to  trace  and  refute  them  separately, 
would  occupy  too  much  space  for  a paper  of  this  kind, 
and  prove  uninteresting  to  the  majority  of  readers. 
These  reports,  being  untrue,  will  die  out  of  themselves 
after  an  ephemeral  existence,  without  the  trouble  of  a 
formal  refutation. 

Much  has  been  said  in  relation  to  the  large  expen- 
ditures made,  and  losses  sustained  by  the  company  in 
consequence  of  procuring  the  grant  of  land ; and  it  has 
been  asserted  that  the  whole  might  have  been  pur- 
chased at  a less  cost  by  entering  them  at  the  land-office 
by  means  of  land- warrants,  &c. 

Without  going  into  any  lengthy  explanations  on 
this  subject,  it  may  be  proper  briefly  to  remark  that 
all  which  has  been  said  in  relation  to  it  is  erroneous. 
The  lands  could  not  have  been  entered  by  means  of 
land-warrants  at  all , nor  for  cash,  at  any  price;  for  the 
reason  that  they  had  been  given  to  the  State.  Con- 
gress appropriated  these  lands  to  the  State,  without 
any  agency  of  the  La  Crosse  Co.  The  simple  fact  ex- 
isted and  could  not  be  changed . The  State  was  about 
to  confer  it  upon  some  company  or  association ; and 
had  not  the  La  Crosse  Co.  applied  for  it,  some  other 
would  have  received  it,  and  by  so  doing  would  have 
2 


18 


been  in  a position  to  monopolize  the  line  of  the  La 
Crosse  road,  and  thus  have  crushed  out  the  La  Crosse 
Company.  Strong  parties  were  applying  for  it,  and  to 
have  yielded  it  to  them  would  have  been  the  total  ruin 
of  the  La  Crosse  Company,  and  a sacrifice  of  all  the  cap. 
ital  invested  in  it.  It  would  have  ruined  many  of  the 
stockholders,  whose  farms  and  homesteads  were  in- 
volved in  it,  and  to  a greater  or  less  extent  would  have 
been  injurious  to  every  stockholder.  It  was,  in  fact,  a 
question  of  necessity,  involving  the  very  existence  of 
the  company ; and  it  was  compelled  to  secure  this  grant, 
or  in  other  words  prevent  any  other  company  from  hav- 
ing it,  or  go  into  bankruptcy.  This  \yas  all  the  ques- 
tion which  the  company  had  to  consider ; and  if  sacri- 
fices were  necessary  to  prevent  so  serious  a result,  it 
was  better  to  meet  them  than  be  sacrificed  wholly  and 
entirely. 

But  it  is  a mistake  to  suppose  that,  under  any  cir- 
cumstances, the  land  could  have  been  purchased  at  a 
cost  less  than  that  expended  by  the  company  in  its 
acquisition.  Land-warrants  will  cost  more  than  a dol- 
lar an  acre ; while  all  the  expenses  incurred  by  the  com- 
pany, of  every  name  and  kind,  on  this  account,  will  fall 
considerable  below  a dollar  an  acre.  No  unnecessary 
expense,  however,  was  incurred : in  every  stage  of 
the  proceeding,  the  interests  of  the  company  were  faith- 
fully guarded;  and  every  representation  to  the  con- 
trary is  destitute  of  truth. 

It  may  not  be  improper  in  this  connection  to  state 
further,  that  in  addition  to  the  public  grant  made  by 
the  State  to  the  company,  arrangements  have  been 
made  which  secure  to  the  company  the  most  valuable 
acquisitions  at  the  St.  Croix  terminus,  worth  from  one 
and  a half  to  two  millions  dollars,  even  before  the  road 
shall  be  finished  to  that  point,  which  will  more  than 


19 


doubly  pay  all  the  expenses  incurred  in  procuring  the 
grant.  These  concessions  could  have  been  as  easily 
secured  to  the  directors  individually  as  to  the  company 
in  its  corporate  capacity,  had  they  been  so  disposed. 
If,  therefore,  the  directors  have  been  called  upon  to 
make  large  expenditures  in  procuring  the  grant,  they 
ought  to  be  awarded  corresponding  credit  for  provid- 
ing the  means  of  paying  all  such  expenditures,  without 
cost  to  the  company. 

Much  has  also  been  said  about  the  company  having 
expended  large  sums  to  secure  an  interest  in  the  Min- 
nesota land-grant ; all  of  which  is  imaginary  and  with- 
out any  foundation.  The  LaCrosse  Company  has  never 
had  nor  desired  to  have  any  interest  in  those  grants, 
except  to  secure  favorable  connections  with  those 
roads,  which  object  has  been  fully  attained  without  the 
expenditure  of  a dollar  of  company  funds ; and  yet 
those  connections  will  be  worth  millions.  Such  erro- 
neous statements  only  exhibit  the  prolific  fruit  of  a 
lively  imagination  in  those  who  seek  for  occasion  to  find 
fault,  and  who  prefer  to  see  only  the  dark  side  of  the 
picture. 

The  income  of  the  first  division  of  the  road  has 
exceeded  the  sanguine  hopes  of  its  friends,  and  the 
receipts  of  the  ensuing  six  months  will  confirm  all  that 
has  been  written  in  this  behalf,  though  only  95  miles 
of  the  road  are  in  operation,  and  the  business  is  at 
present  strictly  of  a local  character. 

On  the  accompanying  map,  the  lines  of  the  La 
Crosse  road  are  colored  in  red,  while  all  branch  or 
tributary  roads  of  other  companies  are  colored  in  blue. 
A mere  glance  at  the  map,  exhibits  our  commanding 
position,  and  carries  conviction  to  the  mind  without 
argument,  that  it  is  the  only  great  artery  along  which 


'20 


must  flow  the  business  of  the  largest  scope  of  the 
finest  country  which  can  be  found  tributary  to  any 
one  road  in  the  United  States.  The  business  of  the 
Upper  Mississippi  surprises  every  one  who  visits 
that  country.  There  are  now  some  forty  steamboats 
plying  on  the  river  above  Galena,  and  all  doing 
a full  and  profitable  business.  The  travel  alone  to 
and  from  that  country,  which  would  pass  over  the 
La  Crosse  road  at  this  time,  if  completed  to  La  Crosse 
and  St.  Croix,  would  make  it  one  of  the  best  paying  roads 
in  the  country.  The  emigration  is  immense,  and  flow- 
ing in  an  increasing  tide  every  year.  The  business  travel 
and  intercourse  are  incredibly  large,  and  increasing  in 
a rapid  ratio.  The  importation  of  merchandise  and  the 
general  traffic,  are  keeping  pace  with  the  settlement  of 
the  country,  and  are  already  very  large,  but  increasing 
at  a pace  requiring  largely  increased  facilities.  All 
these,  to  a very  great  extent,  will  pursue  the  track  of 
the  La  Crosse  Railroad,  and  place  it  in  the  foreground 
of  dividend-paying  railroads,  from  the  moment  it  shall 
be  opened  to  the  bank  of  the  Mississippi  at  La  Crosse 
and  St.  Croix. 

By  the  time  our  road  reaches  these  points,  a road 
will  have  been  commenced  on  the  west  bank  of  the 
Mississippi,  taking  its  course  to  the  south  bend  of  the 
St.  Peter’s  River,  and  thence  up  its  valley  and  across 
the  vast  expanse  of  plain,  some  five  hundred  miles, 
touching  the  upper  section  of  the  Missouri;  making 
tributary  to  our  road  the  southern  part  of  Minnesota ; 
while  from  our  northern  terminus  at  St.  Croix,  as  be- 
fore mentioned,  a road  to  St.  Paul  will  be  in  the  full 
tide  of  successful  operation;  and  thence  extending 
through  the  central  part  of  Minnesota,  on  the  great 
route  towards  the  Pacific,  with  another  line  diverging 


21 


to  the  flourishing  settlements  on  Red  River  to  the  far 
Northwest,  railroad  facilities  will  be  in  rapid  progress, 
bringing  to  our  road  the  rich  tribute  of  the  central 
tract  of  that  territory ; while  yet  again,  extending  to 
the  north,  we  shall  find  in  a state  of  forwardness,  if  not 
completed,  the  St.  Croix  and  Lake  Superior  road,  bring- 
ing to  us  the  valuable  trade  and  travel  of  Northern 
Wisconsin  and  Minnesota.  Our  position  and  facilities 
will  be  such,  as  almost  with  certainty  to  give  us  the 
greater  part  of  the  trade  of  the  Upper  Mississippi,  em- 
bracing the  whole  of  Minnesota,  which  with  one  half 
of  the  State  of  Wisconsin,  will  embrace  an  area  equal 
to  three  of  the  largest  States  of  the  Union,  and  an 
amount  of  business  beyond  computation.  If  any  stock- 
holder in  our  road  desires  to  know  its  value,  he  ought 
to  visit  in  person  that  country,  and  see  with  his  own 
eyes  the  sources  from  whence  it  will  draw  its  support ; 
whereby  he  would  be  convinced  by  stronger  and  more 
abundant  evidence  than  the  descriptions  of  any  third 
party  could  impress  on  him,  however  eloquent  and 
glowing  they  might  be. 

It  had  been  our  intention  in  the  ordinary  course  of 
our  operations  to  have  made  a full  statement  in  Sep- 
tember next  of  the  affairs  of  the  company,  past  and 
present,  and  of  its  prospects  in  future,  based  upon  the 
surveys  of  the  line  and  selections  of  land  actually  made 
under  the  act  of  Congress.  But  the  urgency  of  many 
to  be  informed  of  the  state  of  affairs,  has  induced  us  to 
submit  the  foregoing,  at  an  inconvenient  season  and 
before  the  data  can  be  had  for  that  portion  of  the 
statement  which  would  be  most  highly  interesting  to 
all  concerned.  Hoping  that  the  doubts  which  have 
been  engendered  by  misrepresentation  will  soon  lose 
their  force,  and  that  reason  will  resume  its  sway, 
2* 


22 


in  regard  to  tlie  merits  of  onr  enterprise,  we  will 
look  forward  to  that  support  from  the  stockholders  in 
aid  of  the  work  to  which  its  merits  justly  entitle  it,  and 
in  due  season,  and  as  soon  as  practicable,  furnish  such 
further  and  additional  information  as  may  be  necessary 
to  a full  appreciation  of  the  value  of  the  great  work  which 
we  have  in  hand.  Until  then,  we  beg  the  indulgence 
of  the  stockholders,  and  request  that  they  will  not  be- 
lieve every  idle  tale,  to  the  damage  of  the  officers  of 
the  company,  nor  condemn  them  without  a hearing. 

I have  the  honor  to  be,  very  truly, 

Your  obedient  servant, 

BYRON  KILBOURN, 

President * 

July  23d,  1857. 


New  York,  July  30,  1857- 

Hon.  Byron  Kilbotjrn, 

Prest.  La  C.  and  M.  R.  R.  Go. 

Sir, — The  examination  which  onr  limited  time  at  Mil- 
waukee allowed  ns  to  make  was  not  such  as  would  enable  us 
to  verify  in  detail  all  the  statements  contained  in  the  secre- 
tary’s report ; but  so  far  as  the  examination  extended,  the 
result  of  it  corresponds  with  the  secretary’s  statement. 

We  did  not  investigate  your  affairs  as  a committee  of  the 
stockholders  in  general,  nor  with  the  intention  of  making  a 
public  report ; but  merely  to  satisfy  ourselves,  and  those 
whose  interests  we  represented,  as  to  the  condition  of  the 
finances  of  the  company  and  the  value  of  its  property.  We 
were  of  course  unable  to  examine  all  the  vouchers  and 
accounts  of  the  company,  but  our  examination  led  us  to- 
believe  that  they  contained  nothing  to  justify  the  charges  of 
misconduct  that  had  been  made  against  the  officers  of  the 


23 


company.  As  far  as  we  could  judge,  the  present  directors 
seemed  to  have  managed  its  affairs  with  the  view  of  pro- 
moting the  interests  of  the  stockholders. 

Of  the  value  of  the  route  of  the  road,  the  importance  of 
its  tributaries  and  the  fertility  of  the  adjoining  country,  we 
can  speak  in  the  strongest  terms ; and  when  we  consider 
these  in  connection  with  the  fact  that  the  road  can  be  operated 
at  a small  cost,  we  cannot  doubt  but  that  its  net  receipts  will 
equal  the  sanguine  expectations  of  its  friends. 

Hoping  that  you  will  succeed  in  pushing  forward  the 
road  to  an  early  completion,  we  are 

Yery  respectfully  yours,. 

JACOB  B.  JEWETT, 

D.  H.  MEEKS. 


EXTRACTS  FROM  THE  REPORT  OF  THE  COMMISSIONER 
OF  THE  LAND  DEPARTMENT. 

The  following  description  of  the  lands  in  the  valley  of 
the  Chippewa  Bivers  is  from  the  pen  of  an  intelligent  and 
observant  traveler,  who  has  recently  made  a personal  exam- 
ination of  that  country  : 44  The  soil,  for  the  most  part,  is  a 
deep  rich,  sand  loam,  and  the  face  of  the  country  very  much 
as  we  have  pictured  the  Hunting  Parks  of  Old  England. 
About  every  three  miles,  there  is  a succession  of  small 
streams,  starting  from  the  ridges  half  a dozen  miles  back, 
and  making  straightway  to  the  Chippewa.  The  ground 
between  is  nearly  level,  and  interpersed  with  4 gems  of 
prairie,’  4 oak  openings  ’ and  timber,  with  here  and  there 
specks  of  hay-marsh,  just  enough  to  meet  the  wants  of  new 
settlers.  In  short,  the  country  is  about  as  near  right  as  any 
jolly  husbandman  could  ask  from  the  hands  of  nature.” 
There  is  no  fact,  which  gives  more  value  to  these  lands,  than 
the  general  healthfulness  of  that  portion  of  the  country  in 
which  they  are  situated.  Well  watered,  possessing  a pure 
and  dry  atmosphere,  with  no  local  causes  to  induce  fevers  or 
ague,  or  sickness,  in  any  of  the  numerous  forms  often 
exhibited  in  the  more  southerly  parts  of  the  Mississippi  valley. 


24 


it  is  undoubtedly  as  healthy  a region  as  can  be  found  on  the 
Continent.  It  may  be  supposed,  by  some,  that  these  lands 
are  too  far  north  to  be  well  adapted  to  agricultural  pursuits. 
This  supposition  is  entirely  erroneous.  Hone  of  the  lands  are 
further  north  than  the  northern  parts  of  the  States  of  Ver- 
mont and  Hew  York,  nor  as  far  as  a large  part  of  Maine, 
Hew  Hampshire,  and  nearly  the  whole  of  Canada,  while  the 
more  southerly  portions  of  them  are  in  the  latitude  of  the 
southern  part  of  Vermont  and  central  Hew  York.  But  it  is 
well  known  that  latitude  is  not  alone  the  index  of  climate. 
London  is  in  latitude  51°  30',  the  same  as  the  latitude  of  the 
upper  or  southern  end  of  Hudson’s  Bay,  and  of  Queen  Char- 
lotte’s Sound  on  the  Pacific.  Paris  is  in  latitude  of  the  north 
shore  of  Lake  Superior  and  of  the  Pembina  settlement. 
Florence,  where  it  is  almost  perpetual  summer,  is  in  the  lati- 
tude of  Sheboygan  and  of  Portland,  Maine,  while  Berlin  is 
further  north  than  a large  portion  of  the  coast  of  Labrador. 
But,  on  the  American  Continent,  it  is  well  known  that  the 
climate  on  the  Pacific  coast  is  several  degrees  milder  than  on 
the  Atlantic.  The  same  causes  operate  to  produce  the  same 
result  as  we  recede  from  the  Atlantic  and  approach  the 
Pacific.  The  isothermal  line  is  continually  bearing  north  of 
latitudinal  lines  ; and  it  is  well  known  that  the  climate  of  St. 
Paul,  in  Minnesota,  in  about  latitude  45°,  is  as  mild  during 
the  winter  months  as  that  of  Massachusetts  and  central  Hew 
York.  St.  Paul  and  Buffalo,  Hudson  and  Albany,  Chippewa 
Falls  and  Rochester,  are  isocheimal. 

All  the  arable  lands  in  the  area  above  described,  which 
will  be  intersected  by  your  railroad,  are  peculiarly  adapted 
to  the  growth  of  wheat,  oats,  barley,  buck-wheat,  potatoes 
and  all  other  esculent  roots  ; and  Indian  corn,  especially  the 
yellow-flint  variety,  is  produced  in  great  perfection.  While 
in  the  more  southern  parts  of  the  State,  the  only  variety  of 
wheat  produced  to  any  extent  is  spring  wheat,  in  that  part 
I have  been  describing,  winter  wheat  is  always  a safe  and 
abundant  crop  ; and  it  is  beyond  all  doubt  better  adapted  to 
the  raising  of  winter  wheat  than  any  other  portion  of  the 
State.  The  whole  country  is  excellently  adapted  to  grazing. 
It  is  well  watered  by  numerous  springs  and  small  creeks,  of 


25 


pure,  limpid  water ; and  small,  transparent  lakes  with  pic- 
turesque shores  are  found  in  many  places,  which,  as  well  as 
the  creeks,  abound  with  fish.  The  raising  of  cattle  and  sheep 
in  this  region  will  prove  to  the  farmer  a profitable  business  • 
and  if  viewed  solely  with  reference  to  its  advantages  for 
agricultural  pursuits,  there  can  be  no  reason  why,  when  it 
shall  be  supplied  with  railroad  facilities,  it  will  not  become 
as  densely  peopled  as  any  part  of  the  State. 

In  addition  to  its  value  as  an  agricultural  country,  the 
tract  of  which  we  are  speaking  possesses  a peculiar  value  as 
a lumbering  country,  for  the  manufacture  of  pine  lumber.  It 
is  traversed  by  three  large  rivers,  which  flow  into  .the  Missis- 
sippi : the  Wisconsin,  the  Black,  and  the  Chippewa,  while  it 
is  bounded  on  the  northwest  by  the  St.  Croix.  Upon  all 
these  rivers,  as  well  as  upon  their  tributaries,  are  numerous 
lumbering  establishments,  the  annual  product  of  all  which 
exceeds  three  hundred  million  feet ; while,  in  addition,  saw 
logs  are  rafted  and  run  from  these  rivers  to  the  cities  and 
villages  on  the  Mississippi  river,  to  be  there  manufactured 
into  lumber,  amounting  to  about  half  the  same  quantity. 
The  value  of  the  lumber  products  of  the  forest,  in  that  portion 
of  the  country  drained  by  these  four  large  rivers,  though 
lumbering  is  yet  in  its  infancy,  already  amounts  to  a sum 
varying  from  five  to  eight  million  dollars.  The  value  of 
lumber  is  gradually  increasing,  and  must  continue  to  increase, 
as  the  demand  in  the  Mississippi  Yalley  is,  and  ever  will  be, 
greater  than  the  supply.  The  latter  is  limited,  the  former 
can  have  no  assignable  limit.  The  whole  region  of  country 
between  the  Wisconsin  and  the  St.  Croix  rivers  is  interspersed 
with  thick  groves  of  large  white  pines,  which  are  not  excelled 
in  quality  by  the  pine  of  Maine,  New  Brunswick,  the  Alleg- 
hany or  Susquehanna  rivers,  or  any  other  part  of  the  world. 
While  some  of  this  pine  timber  is  found  in  low  or  swamp 
lands,  the  largest  portion  is  upon  dry  land,  which,  when  the 
timber  is  removed,  is  well  adapted  to  cultivation.  Uo  accur- 
ate estimate  can  be  made  of  the  quantity  of  these  pine  lands, 
until  the  line  is  located  and  the  land  selected  ; but  it  is 
believed  to  be  entirely  within  bounds  to  estimate  that  one 
tenth  part  of  the  entire  quantity,  or  about  one  hundred 


26 


thousand  acres  of  the  lands  of  the  company,  will  be  pine 
timbered  lands.  Lumbering  and  agriculture  are  distinct  and 
very  dissimilar  branches  of  business,  so  that  one  class  of  men 
engage  in  one  pursuit,  and  another  class  in  another.  One 
class  value  the  land  chiefly' for  its  pine  timber  ; the  other  for 
its  agricultural  resources,  and  considers  that  clearing  of  its 
timber  adds  to  its  value.  Hence,  extensive  proprietors  of 
pine  lands  have  actually  adopted  the  policy  of  selling  to  lum- 
bermen the  right  of  cutting  the  timber,  receiving  a certain 
stipulated  price  for  what  is  called  the  “ stumpage,”  and  after- 
wards selling  the  soil  to  the  farmer.  It  would  undoubtedly 
be  the  wisest  course  to  adopt  that  policy  with  reference  to 
the  pine  lands  of  your  company.  The  “ stumpage  ” upon  the 
Penobscot,  the  Kennebec,  and  the  Androscoggin,  in  Maine, 
the  St.  John’s,  in  Hew  Brunswick,  and  upon  the  Alleghany 
and  the  Susquehanna,  is  from  $5  to  $8  per  thousand  feet. 
The  price  is  regulated,  of  course,  very  much  by  the  price  of 
lumber  and  the  supply  of  timber.  Stumpage  is  higher  now 
on  those  rivers  than  it  was  several  years  ago,  when  timber 
was  more  abundant ; and  it  will  be  dearer  in  Wisconsin  a few 
years  hence  that  it  is  now.  Upon  the  pine  lands  of  yo.ur 
company  it  would  be  worth  now  from  $2  to  $5  per  thousand 
feet,  depending  very  much  on  the  distance  it  required  to  be 
hauled.  It  is  safe  to  estimate  the  stumpage  upon  all  the  pine 
lands  of  your  company  at  the  average  price  of  $2  per  thousand. 
Ordinary  pine  trees  will  average  at  least  one  thousand  feet 
each  ; and  it  ought  hardly  to  be  called  pine-timbered  land 
that  will  not  average  twenty-five  trees  to  an  acre  ; so  that, 
upon  this  calculation,  the  stumpage  of  the  pine-timbered 
lands  would  be  $50  per  acre,  which,  as  extravagant  as  it  may 
appear,  I believe  to  be  quite  within  bounds.  In  submitting 
an  estimate,  however,  of  the  amount  to  be  realized  from 
“ stumpage,”  I put  it  at  one  hundred  thousand  acres  at  $30 
per  acre. 

All  the  rivers  and  smaller  streams  which  water  the 
country  through  which  your  railroad  will  pass,  furnish  nu- 
merous water  powers  and  facilities  for  manufacturing  es- 
tablishments. Upon  these  will  be  erected  saw  mills  and  grist 
mills  to  supply  the  first  demands  of  the  inhabitants,  and  to 


27 


enable  them  to  prosecute,  with  profit,  their  agricultural  and 
lumbering  pursuits,  and,  afterwards,  manufacturing  establish- 
ments of  other  kinds,  adapted  to  the  wants  and  interests  of 
the  country.  Many  of  them  will  be  the  nuclei  of  villages, 
some  of  which  may  be  expected  to  become  important  towns 
and  interior  cities  ; and  at  every  station  along  the  line  of  the 
railroad,  villages  or  towns  of  greater  or  less  importance  may 
be  expected  to  grow  up,  a large  portion  of  which  will  be  laid 
out  on  the  lands  of  the  company.  These  stations,  or  villages, 
will  be,  on  an  average,  probably  about  eight  miles  apart,  giv- 
ing upon  two  hundred  and  sixty-eight  miles  of  road  thirty- 
three  stations,  villages,  or  towns  ; of  these,  about  two  thirds, 
or  say  twenty,  it  may  be  assumed,  would  be  on  the  land  of 
the  company;  and  if  one  section  of  six  hundred  and  forty 
acres,  for  each  of  these  twenty  villages,  be  supposed  to  be 
rendered  especially  valuable  in  consequence,  it  would  give 
13,800  acres  of  land  of  this  description.  It  is  also  known  that 
extensive  deposits  of  iron  ore  exist  in  various  localities  be- 
tween Portage  City  and  the  St.  Croix  River,  none  of  which, 
however,  have  been  extensively  worked ; and  no  doubt  exists 
that  quite  a number  of  tracts  of  the  land  of  the  company  will 
prove  to  be  especially  valuable  in  consequence  of  the  deposits 
of  iron  ore  to  be  found  upon  them  ; and  it  is  thought  to  be 
entirely  safe  to  estimate  that  ten  thousand  acres  of  the 
lands  of  the  Company  will  realize  $100  per  acre,  owing  to 
their  value  as  village  sites,  valuable  wrater  powers,  mines,  &c. 

In  forming  an  opinion  of  the  value  of  the  lands  of  the 
Company,  they  should  be  viewed  with  all  the  advantages 
they  will  possess  after  the  road  is  constructed.  All  suitable 
for  cultivation,  none  more  than  fifteen  miles,  and  a large  pro- 
portion within  six  miles  of  the  railroad,  possessing  every  de- 
sirable facility  for  fencing,  fuel,  water,  and  for  cliea})  building 
materials,  with  all  the  adjacent  lands  purchased,  owned,  and 
occupied  by  an  enterprising  and  industrious  population,  there 
can  be  no  reason  why  these  lands  should  not  command  as 
high  prices  as  lands  in  the  more  southern  part  of  the  State, 
of  no  greater  intrinsic  value,  nor  possessing  greater  railroad 
facilities.  Such  lands  are  now  worth,  and  are  selling  at, 
prices  varying  from  $20  to  $40  per  acre  ; and  it  surely  can- 


28 


not  admit  of  doubt,  that  these  lands  will  readily  sell,  after 
the  road  is  completed,  at  from  $10  to  $20  per  acre,  when 
offered  on  a long  credit  and  at  a low  rate  of  interest. 

For  the  purpose  of  showing,  beyond  all  doubt,  that  these 
lands  will  furnish  undoubted  security  for  $10,000,000,  the 
following  estimate  is  submitted ; which  is  believed  to  be 
considerably  below  what  will  ultimately  be  realized  from  the 
lands  : 


10,000  acres  embracing  village  sites,  valuable  water 

powers,  mines,  &c.,  at  $100  per  acre,  $1,000,000 

200.000  “ first-class  farming  lands,  near  the  line,  with 

smaller  water  powers  and  other  privileges, 

at  $20  per  acre,  - 4,000,000 

350.000  “ farming  lands,  &c.,  further  from  the  road, 

at  $15  per  acre,  - 5,250,000 

350,000  “ farming  lands,  at  still  greater  distance  from 

road,  at  $10  per  acre,  - 3,500,000 

119,120  “ inferior  lands,  at  $5  per  acre,  - - 595,600 


1,029,120  “ $14,345,600 

Add,  for  “stumpage  ” on  100,000  acres,  at  $30  per  acre,  3,000,000 


Total  proceeds  of  lands,  $17,345,600 

So  that,  if  bonds  were  issued  for  the  amount  of  $10,000,000, 
a sinking  fund,  consisting  of  the  proceeds  of  the  land  alone, 
would  be  amply  sufficient  to  retire  the  bonds  before  their 
maturity,  even  if  they  were  bought  in  at  a premium  of  ten 
per  cent. 


